This afternoon, Ming-Chi Kuo released a new report about the Apple Watch Series 7.
Kuo pointed out that the market is concerned that the Apple Watch S7 may not be released and mass-produced as scheduled in September due to production issues. Assembly line manufacturers are also facing a shortage of shipments. In addition, revenue from the Apple Watch business is also lower than expected.
Ming-Chi Kuo further revealed that the latest investigation indicates Apple has resolved the quality issues with the panel modules. Luxshare Precision will be responsible for the supply, and the company is currently expanding and replicating its production lines.
Mass shipments are expected to start from mid to late September. The report also predicts that shipments of the Apple Watch Series 7 and Apple Watch will increase significantly to 14-16 million units.
Some key points from Ming-Chi Kuo’s report are mentioned below:
- The main highlights and selling points of the new Apple Watch Series 7 lie in its significant design changes. This series will feature a flat body design and narrow bezels for the first time.
- Apple has introduced a new production process for its new design. The Apple Watch Series 7 will use the OLED G6 production line. The panel module has also changed from a cable connection to a contact connection. In addition, this product will, for the first time, adopt the low-injection-pressure overmolding (LIPO) process.
- The new OLED G6 production line improves productivity and further reduces panel costs. In contrast, the new contact design and LIPO process also improve product durability.
- In the production process (as mentioned above), the key manufacturers are LGD (exclusive panel supplier), Young Poong (panel softboard supplier), and Jabil (panel module supplier).
- Due to the adoption of multiple new production processes for the panel, Apple Watch Series 7 panel modules experienced reliability issues during testing, including panel flickering, delayed touch response, and other issues. This complex production problem may be related to LG Display, Jabil, or Young Poong.
- Apple has also achieved the best product configuration through different designs of experiments (DOE) on the panel module side and further adjusted verification standards on both the panel and assembly sides, thereby addressing the panel module’s reliability issues.
- The report predicts that Jabil will begin the mass production of Watch Series 7 panel modules in mid-September. The products will begin mass shipments in late September if this time is confirmed.